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Operating Segments

12 Months Ended

Dec. 31, 2024

Note 22 - Operating Segments

The Company’s reportable segments, which form the Company’s strategic business units, are described below:

●

Italy – Solar Plants – Operation of installations that convert the energy in sunlight into electrical energy that include approximately 19.7 MW that were connected to the national grid during the year ended December 31, 2024, approximately 18.1 MW that were connected to the national grid during the first quarter of 2025 and approximately 183 MW that have reached RtB status.

●

Spain – Solar Plants as follows:

(i)

approximately 7.9MWp aggregate installed capacity of solar power plants in Spain;

(ii)

Ellomay Solar S.L.U, a solar plant with a peak capacity of 28 MW in the municipality of Talaván, Cáceres, Spain, that was connected to the electricity grid at June 24, 2022; and

(iii)

51% of Talasol, with a peak capacity of 300 MW in the municipality of Talaván, Cáceres, Spain.

●

USA – Solar Plants with installed capacity of approximately 27.4 MW that have finished construction and were placed in service and approximately 22.5 MW that have reached RtB status, all in the Dallas Metropolitan area, Texas,.

●

Netherlands – Groen Gas Goor B.V., Groen Gas Oude-Tonge B.V. and Groen Gas Gelderland B.V. (BioGas), project companies operating anaerobic digestion plants in the Netherlands, with a green gas production capacity of approximately 3 million, 3.8 million and 9.5 million Nm3 per year, respectively.

●

Israel –

(i)

9.375% indirect interest in Dorad, which owns and operates a combined cycle power plant based on natural gas, with production capacity of approximately 850 MW, located south of Ashkelon, Israel;

(ii)

Pumped storage hydro power plant (Manara) – 83.333% indirect interest in a company constructing a 156 MW pumped storage hydro power plant in the Manara Cliff, Israel; and

(iii)

a solar plant of approximately 9 MWp installed capacity in Israel, that was sold during 2024 (see Note 23).

Factors that management used to identify the Company’s reportable segments

The Company’s strategic business units offer different products, and the allocation of resources and evaluation of performance is managed separately because they require different technology.

For each of the strategic business units, the Company’s chief operating decision maker (“CODM”) reviews internal management reports on at least a quarterly basis. The following summary describes the operations in each of the Company’s operating segments.

The Company presented the segments per geographical areas, as the information collected and analyzed by the CODM in connection with the segments is presented based on the physical location of the relevant operations.

The Company revised the headlines of its segment results to present the results also by geography. The change in presentation did not impact the segment results and the segment presentation for prior periods has been conformed to the current period segment presentation.

The CODM reviews the NIS denominated information on Dorad and the Solar Plant located in Israel (See Note 23) and the information presented in the tables below is translated into euro. The CODM reviews the results of Dorad according to the Company’s share in Dorad. In the reports analyzed by the CODM, the Solar Plant located in Israel is presented under the fixed asset model and not under the financial asset model as per IFRIC 12, see the adjusted gross profit calculation.

Performance is measured based on segment adjusted gross profit as included in reports that are regularly reviewed by the chief operating decision maker. Segment adjusted gross profit is used to measure performance as management believes that such information is the most relevant in evaluating the results of certain segments relative to other entities that operate within these industries.

	Italy			Spain									USA		Netherlands			Israel
				Subsidized Solar			28 MW			Talasol											Manara Pumped					Total reportable						Total
	Solar			Plants			Solar			Solar			Solar		Biogas			Dorad			Storage		Solar*			segments			Reconciliations			consolidated
	For the year ended December 31, 2024
	€ in thousands

Revenues		2,293			2,974			1,741			18,365			-		15,094			67,084			-		278			107,829			(67,362	)		40,467
Operating expenses		(109	)		(519	)		(593	)		(4,695	)		-		(13,887	)		(50,065	)		-		(142	)		(70,010	)		50,207			(19,803	)
Depreciation and amortization expenses		(89	)		(919	)		(1,088	)		(11,453	)		-		(2,316	)		(2,489	)		-		(48	)		(18,402	)		2,515			(15,887	)
Gross profit (loss)		2,095			1,536			60			2,217			-		(1,109	)		14,530			-		88			19,417			(14,640	)		4,777

Adjusted gross profit (loss)		2,095			1,536			60			2,217			-		(1,109	)		14,530			-		317			19,646			(14,869	)		4,777
Project development costs																																	(4,101	)
General and administrative expenses																																	(6,063	)
Share of income of equity accounted investee																																	11,062
Other income, net																																	3,409
Operating profit																																	9,084
Financing income																																	2,495
Financing income in connection with derivatives and warrants, net																																	1,140

Financing expenses, net																																	(23,286	)
Profit before taxes on income																																	(10,567	)

Segment assets as at December 31, 2024		67,546			12,633			19,403			225,452			55,564		32,360			109,579			186,333		-			708,870			(31,613	)		677,257

The results of the Talmei Yosef solar plant are presented as a discontinued operation and the plant was sold in June 2024. The gross profit of the Talmei Yosef solar plant located in Israel is adjusted to include income from the sale of electricity (approximately €1,264 thousand) and depreciation expenses (approximately €757 thousand) under the fixed asset model, which were not recognized as revenues and depreciation expenses, respectively, under the financial asset model as per IFRIC 12.

	Italy		Spain									USA		Netherlands			Israel
			Subsidized Solar			28 MW			Talasol											Manara Pumped					Total reportable						Total
	Solar		Plants			Solar			Solar			Solar		Biogas			Dorad			Storage		Solar*			segments			Reconciliations			consolidated
	For the year ended December 31, 2023
	€ in thousands

Revenues		-		2,791			4,051			24,971			-		17,021			63,973			-		675			113,482			(64,648	)		48,834
Operating expenses		-		(517	)		(1,825	)		(5,786	)		-		(14,733	)		(47,322	)		-		(342	)		(70,525	)		47,664			(22,861	)
Depreciation and amortization expenses		-		(912	)		(946	)		(11,459	)		-		(2,670	)		(5,689	)		-		(461	)		(22,137	)		6,125			(16,012	)
Gross profit (loss)		-		1,362			1,280			7,726			-		(382	)		10,962			-		(128	)		20,820			(10,859	)		9,961

Adjusted gross profit (loss)		-		1,362			1,280			7,726			-		(382	)		10,962			-		1,223			22,171			(12,210	)		9,961
Project development costs																																(4,465	)
General and administrative expenses																																(5,283	)
Share of income of equity accounted investee																																4,320
Other income, net																																-
Operating profit																																4,533
Financing income																																8,747
Financing income in connection with derivatives and warrants, net																																251

Financing expenses, net																																(12,555	)
Profit before taxes on income																																976

Segment assets as at December 31, 2023		43,071		12,807			19,691			231,142			6,612		31,164			97,339			172,096		28,297			642,219			(29,367	)		612,852

The results of the Talmei Yosef solar plant are presented as a discontinued operation, and the plant was sold in June 2024. The gross profit of the Talmei Yosef solar plant located in Israel is adjusted to include income from the sale of electricity (approximately €3,844 thousand) and depreciation expenses (approximately €1,818 thousand) under the fixed asset model, which were not recognized as revenues and depreciation expenses, respectively, under the financial asset model as per IFRIC 12.

	Italy		Spain									USA		Netherlands			Israel
			Subsidized Solar			28 MW			Talasol											Manara Pumped					Total reportable						Total
	Solar		Plants			Solar			Solar			Solar		Biogas			Dorad			Storage		Solar*			segments			Reconciliations			consolidated
	For the year ended December 31, 2022
	€ in thousands

Revenues		-		3,264			3,597			32,740			-		12,640			62,813			-		1,119			116,173			(63,932	)		52,241
Operating expenses		-		(322	)		(1,399	)		(8,764	)		-		(13,186	)		(47,442	)		-		(418	)		(71,531	)		47,860			(23,671	)
Depreciation and amortization expenses		-		(908	)		(427	)		(11,400	)		-		(2,824	)		(6,339	)		-		(512	)		(22,410	)		6,830			(15,580	)
Gross profit (loss)		-		2,034			1,771			12,576			-		(3,370	)		9,032			-		189			22,232			(9,242	)		12,990
Adjusted gross profit (loss)		-		2,034			1,771			12,576			-		(3,370	)		9,032			-		1,565			23,608			(10,618	)		12,990
Project development costs																																(3,784	)
General and administrative expenses																																(5,855	)
Share of income of equity accounted investee																																1,206
Other income, net																																-
Operating profit																																4,557
Financing income																																6,443
Financing income in connection with derivatives and warrants, net																																605

Financing expenses, net																																(10,524	)
Profit before taxes on income																																1,081

Segment assets as at December 31, 2022		22,608		14,577			20,090			244,584			-		32,002			107,079			137,432		34,750			613,122			(36,965	)		576,157

The results of the Talmei Yosef solar plant are presented as a discontinued operation and the plant was sold in June 2024. The gross profit of the Talmei Yosef solar plant located in Israel is adjusted to include income from the sale of electricity (approximately €4,546 thousand) and depreciation expenses (approximately €2,051 thousand) under the fixed asset model, which were not recognized as revenues and depreciation expenses, respectively, under the financial asset model as per IFRIC 12.

Geographical information

The Company is domiciled in Israel and it operates in Israel, Spain, Italy and USA through its subsidiaries that promote, develop and own Solar Plants, in the Netherlands through its subsidiaries that own anaerobic digestion plants and also in Israel through Ellomay Luzon Energy.

The following table lists the revenues from the Company’s operations in Italy, Spain, Israel and the Netherlands:

	For the year ended December 31
	2024		2023		2022
	€ in thousands
Italy solar segment		2,293		-		-
Spanish solar segment		2,974		2,791		3,264
Ellomay Solar segment (Spain)		1,741		4,051		3,597
Talasol solar segment (Spain)		18,365		24,971		32,740
Netherlands biogas segment		15,094		17,021		12,640

Total revenues		40,467		48,834		52,241

The following table lists the non-current assets, net from the Company’s operations in Spain, Israel, USA, Italy and the Netherlands:

	As at December 31
	2024		2023
*Non-current assets ()**	€ in thousands
Spain		222,892		238,580
Israel		229,665		195,248
USA		53,750		6,041
Italy		58,038		33,711
Netherlands		25,051		25,871
Total fixed assets, net		589,396		499,451

(*)	Other than financial instruments, deferred tax assets and employee benefit assets.